The global electronics industry has weathered a turbulent storm in recent years, grappling with rising production costs, inflation, and the growing menace of counterfeit devices. However, the US has emerged as a beacon of growth, with online sales of electronics soaring by an impressive 25% in 2023 according to a report from the Admitad affiliate network based on their own research using an internal dataset.
This remarkable surge surpasses the global growth rate of 9%, signaling a resilient and dynamic marketplace. Admitad analyzed over 9 million global online orders from more than 360 brands and more than 600,000 American online orders from over 170 local brands and branches of global corporations, including tech giants like Lenovo, HP
Challenges Of The Global Electronics Industry
The global electronics industry has faced its fair share of challenges in recent years. The specter of rising production costs has compelled manufacturers to increase prices, causing consumer reluctance to invest in smartphones, laptops, and graphics cards. The pervasive inflation has only exacerbated the situation.
A noteworthy concern within the industry is the proliferation of counterfeit devices that mimic leading brands' products. This has left consumers wary and manufacturers struggling to maintain their competitive edge.
However, the growth in online sales is propelled by a confluence of positive factors. The flourishing e-commerce landscape, digitalization, expedited delivery options, marketing efforts by online marketplaces, and the surge in mobile orders have all contributed to the online electronics market's resilience.
Despite the 9% global growth in the number of orders, there is a more cautious trend in spending. In 2023, consumers are willing to spend only 5% more on electronics. Buyers are opting for more cost-effective alternatives or are deferring significant purchases, trying to repair or replace some components rather than buying new devices. This is reflected in the decrease in the average purchase value from $85 to $68.
American Trends: An Oasis In A Desert Of Uncertainty
While the global scenario may appear gloomy, the situation in the United States is notably brighter. Online electronics sales in the US surged by 25% in 2023, with consumers spending 13% more than the previous year. The average order value decreased from $122 to $89, indicating a willingness to opt for more budget-friendly options.
The tech-savvy nature of Americans is evident from the substantial increase in mobile orders, reaching 59.1% in 2023. Among the top cities with the highest share of online electronics orders in 2023 are West Orange, Hackettstown, Marion, Miami, Los Angeles, New York, Brooklyn, Chicago, Washington, and Austin.
Fighting For Clients: Innovative Marketing Strategies
This report also sheds light on the strategies employed by American brands and marketplaces to attract and retain customers. The main channels through which sales were generated in 2023 were:
Content platforms and online media - 29%
Contextual and targeted ads - 20%
Affiliate stores - 12.7%
Cashback services - 10.7%
Online services - 9.3%
Coupon sites - 7.6%
Groups and blogs in social media - 7%
Other - 3.7%
Notably, sales through third-party mobile apps doubled in 2023, showcasing the importance of mobile channels in the electronics market. Contextual and targeted ads, with almost double the number of orders, also demonstrated remarkable growth. Coupons, utilized 21% more frequently, played a pivotal role in consumers' decision-making.
Influencer recommendations and social media groups witnessed a 32% surge in sales through this channel. However, the most substantial increase was seen in sales through affiliate stores, which jumped by an astounding 122%. This significant growth is particularly noteworthy given the dominant share of sales these stores account for.
As competition intensifies, traditional channels for attracting customers are becoming increasingly expensive. In response, fixed-price marketing solutions like partner marketing have grown in popularity. In 2023, the number of American electronics brands employing affiliate marketing strategies increased by 11%, resulting in publishers earning higher revenues from the electronics market's frenzy.
Looking Ahead: Optimism In Uncertain Times
As the upcoming sale season looms, brands are urged to pay heed to industry trends to maximize their sales during events like Black Friday and Cyber Monday. In a world of uncertainty and economic challenges, the US online electronics market still stands out as a testament to resilience, adaptability, and the power of innovation.
